The Debate On Where The Russian Economy Should Head Is Raging On In Moscow

Moscow's Financial District. Ruscow, Flickr

F. William Engdahl, NEO: Putin: Nyet to Neo-liberals, Da to National Development

After more than two years of worsening economic growth and an economy struggling with 10.5% central bank interest rates that make new credit to spur growth virtually impossible, Russian President Vladimir Putin has finally broken an internal factional standoff. On July 25 he mandated that an economic group called the Stolypin Club prepare their proposals to spur growth revival to be presented to the government by the Fourth Quarter of this year. In doing so, Putin has rejected two influential liberal or neo-liberal economic factions that had brought Russia into a politically and economically dangerous recession with their liberal Western free market ideology. This is a major development, one I had been expecting since I had the possibility to exchange views this June in St. Petersburg at the annual St. Petersburg International Economic Forum.

With very little fanfare, Russian press a few days ago carried a note that could have a most profound positive significance for the future of the Russian domestic economy. The online Russian blog, Katheon, carried the following short notice: “Russian President Vladimir Putin instructed (the Stolypin economist group–w.e.) to finalize the report of the Stolypin Club and on its basis to prepare a new program of economic development, alternative to Kudrin’s economic plan. The program itself should be given to the Bureau of Economic Council in the IV quarter of 2016.”

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WNU Editor: Regular reader RRH pointed out this story to me last week .... and talk about timing .... I spent a lot of time last week in Moscow on being a witness to this debate on where the Russian economy should be going. And while the above post is extensive and is a must read if the Russian economy is your thing, I can say that nothing has been finalised right now .... that the debate is still ongoing .... but expect a more comprehensive plan by next year, and this is the domestic platform that Putin will run on when he seeks another Presidential term.